Valaris plc enters into $ 500 million DIP term credit agreement

LONDON, September 28, 2020 / PRNewswire / – Valaris plc (OTC: VALPQ) (“Valaris” or the “Company”) announced today that, on September 25, 2020, the company has entered into a $ 500 million Debtor in Possession Term Loan Agreement (“DIP”) with certain of its Noteholders. This agreement was executed after receiving final approval to access the U.S. Bankruptcy Court’s DIP Term Loan Facility for the Southern District of Texas. Including more than $ 180 million of cash available from September 25, 2020, the company has more $ 680 million of total available liquidity. Valaris also received final approval for Day 1 motions to continue to operate in the ordinary course of business.

“With access to this additional liquidity, I am even more encouraged that we will be able to sustain our continued operations without disruption throughout the Chapter 11 process and benefit from a market rally over the long term. term “said Tom burke, President and CEO of Valaris. “I am happy to work closely with a group of our noteholders who are focused on what is best for Valaris and its future, including creating one of the best records in the industry.”

Burke continued, “I would like to thank our stakeholders, including our valued customers, suppliers and in particular our employees, for their continued support throughout this process as we build a strong financial foundation for the company.”

Further information

As previously announced, the August 19, the Company has voluntarily filed a Chapter 11 application to implement a Financial Restructuring under the terms set out in the Restructuring Support Agreement (the “RSA”) and the Support Commitment Agreement (the “ BCA ”). Approximately 72% of the Company’s noteholders (“Consenting Noteholders”) have agreed to support the restructuring.

The signed order, other documents filed by the Court and additional information relating to the proceedings supervised by the Court are available on a website administered by the Company’s claims officer, Stretto, http://cases.stretto.com/Valaris. Questions should be directed to our dedicated restructuring hotline 855-348-2032 (toll free) or +1 949-266-6309 (international).

The story continues

Kirkland & Ellis LLP and Slaughter and May are legal advisers to Valaris in connection with the restructuring. Lazard Ltd. is the investment banker of Valaris and Alvarez & Marsal North America LLC as a restructuring advisor. Kramer Levin Naftalis & Frankel LLP and Akin Gump Strauss Hauer & Feld LLP are acting as legal advisers to the consenting Noteholders, and Houlihan Lokey Inc. is acting as financial advisor.

About Valaris plc

Valaris plc (OTC: VALPQ) is the industry leader in offshore drilling services at all water depths and geographies. Operating a fleet of high quality rigs including ultra-deep water drill vessels, multi-purpose semi-submersibles and modern shallow water elevators, Valaris has experience in almost all large offshore basins. With an unwavering commitment to safety and operational excellence, and a focus on technology and innovation, Valaris was ranked first for total customer satisfaction in EnergyPoint Research’s latest independent survey – the ninth consecutive year that the company has won this distinction. Valaris plc is an English public limited company (No.7023598 from England) with its registered office at 110 Cannon Street, London EC4N 6EU. To learn more, visit our website at www.valaris.com.

Warning statements

Statements in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as as modified. Forward-looking statements include words or expressions such as “anticipate”, “believe”, “estimate”, “expect”, “intend”, “plan”, “plan”, “could”, “may “,” Could “,” should “,” will “and similar words. Such statements are subject to numerous risks, uncertainties and assumptions which may cause actual results to differ materially from those shown, including the ability of the Company to obtain bankruptcy court approval with respect to motions or other requests to the court to negotiate, develop, confirm and complete a reorganization plan, the effects of Chapter 11 cases on the Company’s liquidity or operating results or business prospects; the effects of Chapter 11 cases on the business of the company and the interests of various constituents, the length of time the company will operate under Chapter 11 protection, the risks associated with third party motions in Chapter 11 cases, the potential outcome of evaluations of the company’s strategic alternatives and debt levels, its liquidity and its ability to access funding sources, debt restrictions that may limit our liquidity and flexibility, the COVID epidemic- 19 and the global pandemic, the associated public health measures implemented by governments around the world, which may, among other things, impact our ability to staff platforms and rotate crews, declining oil prices in 2020 caused in part by the COVID-19 pandemic and the decisions of some oil producers to reduce export prices and increase production of oil, cancellation, suspension, renegotiation or termination of contracts and drilling programs. In particular, the unprecedented nature of the current economic downturn, pandemic, and industry decline may make it particularly difficult to identify risks or predict the extent to which identified risks will impact the business and the environment. financial situation of the company. Besides the many factors described above, you should also carefully read and take into account “Point 1A. Risk Factors ”in Part I and“ Point 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations ”in Part II of our most recent annual report on Form 10-K, updated in our subsequent quarterly reports on Form 10-Q, which are available on the Securities and Exchange Commission website at www.sec.gov or in the Investor Relations section of our website at www.valaris.com. Each forward-looking statement speaks only as of the date of the particular statement and we do not undertake any obligation to update or revise any forward-looking statements, except as required by law.

Media contact

Dana gorman / Sydney isaacs
Abernathy MacGregor
+ 1212-371-5999

Investor contact

Darin Gibbins
Vice-President – Investor Relations and Treasurer
+1 713-979-4623

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SOURCE Valaris plc